Ilkeston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Ilkeston tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Ilkeston you would be well advised to see if your lease has between seventy and ninety years left. There are good reasons why a Ilkeston flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service will provide you enhanced control over the value of your Ilkeston leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted discussions with the freeholder of her ground floor flat in Ilkeston, Lucy started the lease extension process as the eighty year deadline was swiftly approaching. The legal work completed in February 2015. The freeholder’s fees were restricted to a tad over 600 pounds.
Last Spring we were e-mailed by Mr and Mrs. V Baker , who bought a one bedroom flat in Ilkeston in January 2012. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Ilkeston with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 collected yearly. The lease finished in 2079. Having 53 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.
Last Autumn we were called by Mr and Mrs. H García , who bought a recently refurbished apartment in Ilkeston in June 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Ilkeston with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease lapsed on 1 October 2099. Considering the 73 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.